Cross border insolvencies and financial restructurings are remarkably opaque considering we live in the Information Age. The mission of the Centre of Main Interest (the COMI) is to light some candles in the darkness and create a forum for further discussion. The Law Offices of Tally M. Wiener, Esq. are pleased to publish the COMI blog.
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Under a 2008 accord, Intel gave $1 billion to Lehman’s
over-the-counter derivatives unit in August of that year in
exchange for 50 million shares of its stock, to be delivered on
September 29, 2008, according to a complaint filed yesterday in
U.S. Bankruptcy Court in Manhattan.

Lehman Brothers Holdings Inc.
filed the biggest bankruptcy in U.S. history in September 2008, listing
assets of $639 billion.

Lehman posted $1 billion in cash collateral to Intel as
part of the deal, which specified that in the event of early
termination, Intel would be compensated for its losses.

Intel ended the deal two weeks after Lehman filed for
bankruptcy protection on Sept. 15, 2008, and seized the $1
billion in cash collateral and has refused to return it, even
though its losses on the swap were “far less then $1 billion,”
lawyers for Lehman said in the complaint. Lehman seeks
repayment, plus interest.

“We are aware of the dispute,” Chuck Mulloy, spokesman
for Santa Clara, California-based Intel, said by phone. “We are
evaluating the matter and have nothing more to say at this
time.”

Lehman filed the biggest bankruptcy in U.S. history in
September 2008, listing assets of $639 billion. The former
investment bank has paid creditors $36.7 billion, out of the
estimated $65 billion it has said it will distribute by around
2016.

The case is Lehman Brothers Holdings Inc. v. Intel Corp.,
13-1340, U.S. Bankruptcy Court, Southern District of New York
(Manhattan). . . .